The pace of oil-and-natural-gas-related engineering and construction work has been nothing short of frenetic over the past several years, with global engineering and construction giants scrambling to find qualified professionals to staff a slew of multibillion-dollar projects. But the combined effects of falling energy prices, a slumping global economy and the lingering credit crisis are raising doubts about whether the world’s largest energy companies will continue to keep their capital investments flowing in 2009 and 2010.
The international market for designing and building oil-and-gas collection systems, pipelines, refineries and liquefied natural-gas facilities has been strong for years, and the recent run-up in energy prices had left nationally owned and investor-owned oil and gas companies flush with cash and eager to invest in projects that would help them keep pace with growing demand. But as energy prices sagged this summer and fall, entities ranging from the Organization of Petroleum Exporting Countries to oil and gas companies said they are reviewing their 2009 expansion plans and may delay some projects.